Good acquisition questions help you do two things quickly: understand the economics of the business and test whether the seller is credible, organised, and transparent.
You do not need a giant diligence pack on day one. You need a sharp first conversation that reveals what matters most: how the business really makes money, where it is fragile, and whether the owner can transfer it cleanly.
For Australian buyers, it also helps to ask questions that surface BAS support, lease terms, workforce obligations, and whether any licence or compliance issues could complicate settlement.
Key takeaways
- Ask questions that reveal transferability and earnings quality.
- Listen for vagueness, inconsistency, and unverified claims.
- Use the same question set across opportunities so comparisons stay clean.
- Australian buyers should probe BAS, staffing obligations, lease risk, and licence transfer issues early.
1. Questions about financial performance
Ask how profit has changed over the last two to three years, what is included in add-backs, how revenue has trended month to month, and whether any major customers or contracts have changed recently.
If the broker or seller cannot explain the bridge from reported revenue to actual owner earnings clearly, the opportunity is usually not ready for serious diligence.
- What do the add-backs represent in plain English?
- Can the revenue be triangulated to BAS or other records?
- Were there any unusual one-off boosts in the last 12 months?
2. Questions about customers and concentration
Ask what percentage of revenue comes from the top five customers, how sticky those relationships are, whether there are formal contracts, and how often the business loses customers unexpectedly.
In many Australian small businesses, concentration risk is hidden because the customer relationships are personal rather than contractual. That should shape both valuation and structure.
3. Questions about the owner role
Ask what the current owner does each week, which relationships depend on them personally, what approvals they control, and what would break if they left immediately.
This is one of the highest-value parts of the conversation because it reveals whether you are buying a business system or mostly buying a person's effort and reputation.
4. Questions about staff and operations
Ask who the key staff are, how long they have been with the business, whether pay and entitlements are current, and what operational knowledge is documented versus held informally by the team.
If the business relies on a single estimator, practice manager, production lead, or sales operator, you need to know how secure that relationship really is.
5. Questions about lease, licences, and compliance
Ask about lease expiry, rent review timing, landlord consent for assignment, licences or accreditations required to operate, pending disputes, and whether there have been any regulator issues or remediation items.
These questions matter disproportionately in Australia because many good businesses are still vulnerable to premises, workforce, or licensing friction at settlement.
6. Questions about handover and transition
Ask how long the owner is willing to stay involved after completion, what training they will provide, how they will introduce you to customers and suppliers, and whether key staff know the business is being sold.
A business can survive a mediocre valuation discussion far more easily than a poor handover.
These resources are general information only. They are intended to support research and screening, not replace legal, tax, accounting, or transaction advice.
Related questions
A few quick answers that often come up when buyers are evaluating this topic.
Should I ask for everything in the first call?
No. Start with the questions that reveal transferability, earnings quality, and credibility. If the answers are strong, then move into a deeper document request.
What answer should make me cautious immediately?
Be cautious when the owner role is vaguely described, the add-backs are hard to explain, or the seller cannot clearly describe customer concentration and lease position.
Keep reading
These related guides cover the next questions buyers usually ask once they get through the basics.
Small business due diligence checklist for Australia
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Read guideRed flags when buying a small business in Australia
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Read guideHow to buy a business in Australia
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Read guideScreen more opportunities with a tighter acquisition lens.
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